PsychologicalPricing

Behavior economics is a relatively new concept that was developed by Daniel Kahnemanand Amos Tverskyand is known as the prospect theory. The prospect theory posits that consumers are inspired by the comparisonof prices to the reference price rather than the actual price. Please discuss why managing price expectations is as important as managing price. Please give three examples of local restaurants using prospect theory.Include a minimum of one reference.